Highlights

  • Precision Drilling boosted daily revenue to around CAD 34K with more Super Triple deployments.
  • The company increased well-service hours by 6% and maintained seven active rigs internationally, generating nearly USD 54K per day.
  • An operating cash flow of CAD 75.9 million in Q3 2025 supported ongoing debt reduction and share buyback programs.

Precision Drilling Corp (TSX:PD) stands as one of North America’s prominent providers of oilfield services. The company delivers contract drilling, completion, and production solutions, mainly serving oil and natural gas exploration and production firms across Canada.

The company’s recent updates from October highlight two key developments. In Canada, rig activity averaged 63 rigs, which was slightly lower year-on-year, but daily revenue improved to about CAD 34K owing to an increase in Super Triple deployments.

Notably, well-service hours rose by 6%, indicating higher field demand as winter approaches. Internationally, operations involved an average of seven rigs, with daily revenue nearing USD 54k, supported by additional recertification work. Stable cash flow continues to be underpinned by long-term contracts across the Middle East.

Q3 Financial Performance

In the third quarter of 2025 (Q3 2025), Precision Drilling’s revenue stood at CAD 462.3 million, marking a 3.1% year-on-year decline, as softer drilling demand impacted performance, though results stayed relatively steady.

Adjusted EBITDA dropped 17.4% to CAD 117.6 million, yet held up reasonably well despite lower operational activity. The company posted a net loss of CAD 6.5 million in Q3 2025, compared to a profit of CAD 39.2 million last year, reflecting sector weakness, but a turnaround is anticipated as overall activity improves.

Cash provided by operations remained healthy at CAD 75.9 million, supporting ongoing debt reduction and buyback initiatives.

Company Outlook

The company’s outlook for 2026 remains positive, underpinned by continued long-term energy demand, the expansion of LNG, and greater natural gas requirements tied to AI advancements. Canadian operations are expected to benefit from new pipeline capacity and higher rig demand spurred by LNG Canada, pointing to a solid winter season. In the U.S., activity is mixed but showing improvement on the gas side, while internationally, rigs remain stable under multi-year contracts. With commodity prices holding steady, business activity is anticipated to remain stable through year-end, backed by healthy margins in Canada and the U.S.

Top 10 Shareholders

The top ten shareholders collectively control around 28.52% of the company’s total equity. Among them, the National Bank of Canada holds the largest share at approximately 5.55%, followed by Encompass Capital Advisors, LLC, with about 4.23%.

Stock Information

The stock has gained approximately 1.06% over the past week and about 12.48% in the last three months. It is currently trading above its 52-week average range, which spans from a low of CAD 51.38 to a high of CAD 96.91.

Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference data for all price data, currency, technical indicators, support, and resistance levels is 31 Oct 2025. The reference data in this report has been partly sourced from EODHD/Others.

Technical Indicators Defined

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.

Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.